Chapter 11 Bankruptcy Lawyer in Arlington
Debt Relief for Texas Business Owners
Chapter 11 is not as well understood as Chapter 7 and Chapter 13. This chapter allows struggling business owners to reorganize their debts and confidently address the financial needs of their company with the hope of rebuilding and securing renewed financial solidity. In 2010 alone, more than 14,000 Chapter 11 cases were filed. Large corporations such as K-Mart, General Motors, and United Airlines have all filed for Chapter 11 bankruptcy.
If you are a business owner in North Texas and struggling to keep above water, filing for Chapter 11 could be the key solution to help you restructure your company and discharge debts.
Is Business Reorganization Bankruptcy Right For you?
Chapter 11 bankruptcy is also known as a "business reorganization" bankruptcy. Individuals can, rarely, utilize this form of bankruptcy, but it is most commonly used by businesses facing financial hardships. Qualified debtors can reorganize their payment responsibilities and repay their debts while continuing to operate their business with oversight from the court.
Major corporations and small businesses alike can utilize the provisions in Chapter 11, but there are some special exceptions available for small businesses. Under the bankruptcy code, a small business debtor is a business owner who owes a total of $2,490,925 or less.
Special exemptions available for small businesses under Chapter 11 include:
- Option for No Creditor's Committee - In most Chapter 11 cases, an appointed committee represents the interests of the involved creditors. This can increase the cost of filing for a business reorganization, as the committee can hire attorneys at the debtor's expense. For small businesses, the courts can prevent the appointment of a creditor's committee, which can significantly reduce costs.
- Waiver of Disclosure Statement Requirement - Most debtors filing for Chapter 11 submit a disclosure statement for approval to the courts, which is then given to creditors. These statements provide information about the proposed repayment plan. For small businesses, the court can waive this requirement, which can expedite the process and reduce costs.
- Additional Filing Duties and Trustee Oversight - Small businesses are subject to some more reporting and oversight requirements than other Chapters 11 filers.
If you hope to keep your business afloat and continue operations after the bankruptcy proceedings are over, Chapter 11 bankruptcy could be a good choice for your business. If you qualify, this process allows you to:
- Continue to be in business and retain the property
- Identify which assets to liquidate to pay off debts
- Modify payment terms
- You may be able to discharge some obligation you cannot pay over the plan term.
Difference between Chapter 7 and Chapter 11 Bankruptcy
In Chapter 11 bankruptcy, as discussed previously, debts are restructured into a more achievable payment and a business is able to continue operation during this bankruptcy. In Chapter 7 bankruptcy, debts are forgiven at the cost of liquidating (selling) your personal assets in order to pay the debt that is owed. Chapter 7 bankruptcy is more commonly used for personal bankruptcy where as Chapter 11 bankruptcy is for business owner/small businesses.
Serving Business Owners Throughout North Texas
If you are a business owner contemplating filing for bankruptcy, don't hesitate to get in touch with our experienced Arlington bankruptcy lawyer today. We have effectively served countless clients throughout Arlington, Mansfield, Grand Prairie, Fort Worth, Cedar Hill, and other North Texas communities since our bankruptcy law firm was founded in 1998. With over 30 years of experience, Attorney Marilyn Garner understands Texas bankruptcy laws as they apply to business owners.
Free Confidential Consultation
Our goal is to serve each of our clients individually, offering the information and guidance they need to find the right solution for their particular needs and unique situation.
Individual Care for Clients
We are not interested in “cookie-cutter” services. When you work with us, you can depend on direct service from our knowledgeable attorney—not an inexperienced paralegal or legal assistant.
Top-Rated Ethics & Skill
Our firm is dedicated to maintaining the highest ethical and legal standards throughout every case. Our lawyer’s AV® rating is just one testament to how we fulfill this commitment to every client.
30+ Years of Experience
The lawyer who leads our firm has been practicing since 1983. Attorney Marilyn D. Garner understands what you are facing and is intimately familiar with the laws that affect your situation.